Is my Mudslide Damage Covered?

Fires and Mudslides

In my review of the news I noted that since the most recent rainstorm hit the Los Angeles area, at least 400 mudslides have taken place, causing damage to homes and businesses with more rain on the way.

Why the large number of mudslides? Well, the latest catastrophe is the result of the wildfires that plagued us all the way from the Oregon border south to San Diego, destroying plant life and vegetation. The fire, rain and mudslides will result in coverage issues that hundreds of Claim Adjusters will be presenting to their supervisors for an answer.

On Jan. 17, 2025, the New York Post stated that a home valued at $2M survived the devastating fire in Pacific Palisades, however this same home was split in two by a mudslide resulting from the recent rainstorms. This is a loss that demonstrates clearly that what you think is a loss that will be denied can in fact be covered.

The following paragraph contains the official language from a Homeowners 3 Special Form concerning the lack of coverage of Earth Movement claims:

“SECTION I – EXCLUSIONS

We do not insure for losses caused directly or indirectly by any of the following. Such a loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss.

a. “Ordinance or Law…”

b. “Earth Movement, meaning earthquake including land shock waves or tremors before, during or after a volcanic eruption; landslide, mine subsidence; mudflow; earth sinking, rising, or shifting, unless direct loss by

(1) Fire

(2) Explosion; or

(3) Breakage of glass or safety glazing material which is part of a building, storm door or storm window.

And then we will pay only for the ensuing loss.

This exclusion does not apply to loss by theft.”

Concurrent Causation

A property claims adjuster, when looking at the loss involving the home split in two after it survived the fire storm, would initially believe that no coverage would be applicable due to the denial language for mudflow quoted above.

However, further review is necessary since what needs to be determined is what was the proximate cause of the damage, was it the mudslide, or was it the fire that preceded the rainstorm that caused the mudslide. In a property damage claim, a concurrent causation situation takes place when a loss from two separate causes, with one of the causes having coverage and the other does not.

In the situation involving our home that is split in two due to the mudslide, we would need to determine what the originating, or proximate cause of the loss was. It appears that the presence of the fire destroyed all landscaping around the home causing the soil to lose its permeability and resulting in the home sliding down the hillside, and since fire damage is a covered loss, the resulting damage from the landslide would be covered.

Hopefully, this article will have answered questions you may have. Please feel free to contact me at the email address below.

Respectfully Submitted,

Norman Lambe

nwlambe@gmail.com